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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: December 15, 2004
(Date of earliest event reported)
DARDEN RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
Commission File Number: 1-13666
Florida 59-3305930
(State or other jurisdiction of incorporation) (IRS Employer Identification No.)
5900 Lake Ellenor Drive, Orlando, Florida 32809
(Address of principal executive offices, including zip code)
(407) 245-4000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
Darden Restaurants, Inc. (the "Company") issued a news release dated
December 16, 2004, entitled "Darden Restaurants Reports Second Quarter Diluted
Net Earnings Per Share of 26 Cents; Increases Outlook for Fiscal 2005 Diluted
Net Earnings Per Share Growth; Reports Restatement," a copy of which is
furnished herewith as Exhibit 99 to this Current Report on Form 8-K.
The information under this Item 2.02 in this Current Report on Form 8-K,
including Exhibit 99 hereto, shall not be deemed "filed" for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or
otherwise subject to the liabilities of that section. The information in this
Current Report on Form 8-K shall not be deemed to be incorporated by reference
in any filing under the Securities Act of 1933, as amended, or the Exchange Act,
except as expressly set forth by specific reference in such filing.
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
(a) Following a review of its accounting policy and in consultation with
its independent registered public accounting firm, KPMG LLP, the Company has
determined that it had incorrectly calculated its straight-line rent expense and
related deferred rent liability and has modified its computation to correct this
issue. As a result, on December 15, 2004, the Company's Board of Directors
concluded that the Company's previously filed financial statements for fiscal
years 1996 through 2004 and the first quarter of fiscal 2005 should be restated.
Historically, when accounting for leases with renewal options, the Company has
recorded rent expense on a straight-line basis over the initial non-cancelable
lease term, with the term commencing when actual rent payments began. The
Company depreciated its buildings, leasehold improvements and other long-lived
assets on those properties over a period that included both the initial
non-cancelable term of the lease and all option periods provided for in the
lease (or the useful life of the assets if shorter). The Company will restate
its financial statements to recognize rent expense on a straight-line basis over
the entire lease term, including cancelable option periods where failure to
exercise such options would result in an economic penalty. The lease term will
commence on the date when the Company becomes legally obligated for the rent
payments.
The Company estimates that the cumulative effect of the restatement through
fiscal 2004 will be an increase in the deferred rent liability of approximately
$120 million. In addition, the deferred income tax liability as of the end of
fiscal 2004 will decrease by approximately $46 million. As a result, retained
earnings at the end of fiscal 2004 will decrease by approximately $74 million.
Rent expense for fiscal years ended 2002, 2003 and 2004 will increase by
approximately $8 million, $10 million and $7 million, respectively, and for the
first quarter of fiscal 2005 by approximately $1.8 million. The restatement will
decrease diluted net earnings per share by approximately $0.03, $0.04 and $0.03
for fiscal years ended 2002, 2003 and 2004, respectively, and approximately
$0.007 for the first quarter of fiscal 2005. The restatement will not have any
impact on the Company's previously reported cash flows, sales or same-restaurant
sales or compliance with any covenant under its credit facility or other debt
instruments.
2
These estimates are subject to change as the Company's independent
registered public accounting firm completes its review. The Company will file
with the Securities and Exchange Commission (SEC) an amended Form 10-K for the
fiscal year ended May 30, 2004, and an amended Form 10-Q for the fiscal quarter
ended August 24, 2004, to report these restatements. As a result of the
restatement, the financial statements contained in the Company's prior filings
with the SEC should no longer be relied upon.
The Company's Audit Committee discussed the matters disclosed in this
Current Report on Form 8-K pursuant to this Item 4.02(a) with the Company's
independent registered public accounting firm, KPMG LLP.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
The following exhibit is being furnished with this Current Report:
Exhibit Number
(by reference to
Item 601 of
Regulation S-K) Description
99 Press Release dated December 16, 2004, entitled
"Darden Restaurants Reports Second Quarter Diluted Net
Earnings Per Share of 26 Cents; Increases Outlook for
Fiscal 2005 Diluted Net Earnings Per Share Growth;
Reports Restatement."
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DARDEN RESTAURANTS, INC.
By: /s/ Paula J. Shives
---------------------------------
Paula J. Shives
Senior Vice President, General
Counsel and Secretary
Date: December 16, 2004
4
EXHIBIT INDEX
Exhibit Number Description of Exhibit
99 Press Release dated December 16, 2004, entitled
"Darden Restaurants Reports Second Quarter Diluted
Net Earnings Per Share of 26 Cents; Increases Outlook
for Fiscal 2005 Diluted Net Earnings Per Share
Growth; Reports Restatement."
5
Exhibit 99
DARDEN RESTAURANTS
Red Lobster(R) Olive Garden(R) Bahama Breeze(R) Smokey Bones(R)
www.darden.com
NEWS/INFORMATION
Corporate Relations
P.O. Box 593330
Orlando, FL 32859
Contacts:
(Analysts) Matthew Stroud (407) 245-6458
(Media) Jim DeSimone (407) 245-4567
FOR RELEASE
December 16, 2004
6:30 PM ET
DARDEN RESTAURANTS REPORTS SECOND QUARTER DILUTED NET EARNINGS
PER SHARE OF 26 CENTS; INCREASES OUTLOOK FOR FISCAL 2005 DILUTED NET
EARNINGS PER SHARE GROWTH; REPORTS RESTATEMENT
ORLANDO, FL, December 16 - Darden Restaurants, Inc. today reported quarterly
sales of $1.23 billion for the second quarter ended November 28, 2004, and
diluted net earnings per share of 26 cents, a 44% increase over the prior year.
These and all other amounts in this press release have been presented on a basis
consistent with a restatement that the Company also announced, which is
described below.
"This quarter's outstanding results were driven by continued industry leading
performance at Olive Garden and significant improvement at Red Lobster," said
Clarence Otis, Chief Executive Officer of Darden. "Both companies' strong sales
and operating profit results this quarter reflect their focus on brilliance with
the basics in two key areas, restaurant operations and brand building. As a
result, Olive Garden continued to deliver competitively superior guest
experiences and Red Lobster achieved record guest satisfaction results. We
believe being even more effective across all of Darden in these key areas is how
we'll achieve our goal of being the best in casual dining now and for
generations."
Highlights for the quarter ended November 28, 2004, include the following:
o Net earnings in the second quarter were $43.0 million or 26 cents per
diluted share, on sales of $1.23 billion, including an earnings per share
impact of $0.007 reflecting the restatement described below. Last year, net
earnings were $30.1 million, or 18 cents per diluted share, on sales of
$1.14 billion, including an earnings per share impact of $0.007 reflecting
the restatement described below.
o Total sales of $1.23 billion represent a 7.6% increase over prior year.
o Olive Garden reported its 41st consecutive quarter of same-restaurant sales
growth with a 5.5% increase.
o Red Lobster reported same-restaurant sales growth of 3.4% for the quarter.
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o The Company now expects diluted net earnings per share growth in the range
of 22% to 27% on a GAAP basis, which is a growth rate of 10% to 15%
excluding the asset impairment and restructuring charge ($23.1 million
after tax or $0.14 per diluted share) taken in the fourth quarter of fiscal
2004. The Company had previously estimated that diluted net earnings per
share growth would be in the range of 8% to 12% excluding the asset
impairment and restructuring charge taken in the fourth quarter of fiscal
2004.
o The Company continued its repurchase of shares, buying back 256,155 shares
of its common stock in the quarter.
o Following a review of its accounting policy and in consultation with its
independent registered public accounting firm, KPMG LLP, the Company has
corrected its computation of straight-line rent expense and the related
deferred rent liability and as a result will restate its prior period
financial statements. As discussed below, this restatement has a modest
impact on diluted net earnings per share and no impact on the Company's
cash flows, sales or same-restaurant sales for prior periods or compliance
with any covenant under its credit facility or other debt instruments.
Operating Highlights
OLIVE GARDEN'S record second quarter sales of $564.2 million were 8.8% above
prior year, driven by a same-restaurant sales increase of 5.5% and revenue from
15 net new restaurants in operation versus last year. This is the 41st
consecutive quarter of comparable-restaurant sales growth for Olive Garden and
builds on a 4.3% increase in the second quarter last year. The company's
increased sales, combined with lower restaurant expenses and depreciation as a
percent of sales more than offset increased restaurant labor and selling,
general and administrative expenses as a percent of sales. This resulted in a
record operating profit for the second quarter.
RED LOBSTER'S second quarter sales of $569.2 million were 4.4% above prior year,
driven by a same-restaurant sales increase of 3.4%. Red Lobster's increased
sales along with lower food and beverage expenses as a percent of sales, lower
restaurant labor costs as a percent of sales, lower restaurant expense as a
percent of sales and lower selling, general and administrative expenses as a
percent of sales, resulted in record operating profit for the second quarter.
BAHAMA BREEZE delivered improved financial performance this quarter. Operating
five fewer restaurants than the prior year, Bahama Breeze achieved lower cost of
sales and labor expenses as a percent of sales while strengthening the guest
experience it provides.
SMOKEY BONES opened seven restaurants during the second quarter, bringing the
year-to-date total to 14 openings. In addition, the company has opened five more
restaurants since the end of the quarter. As a result, Smokey Bones now has 88
restaurants in operation. It expects to open a total of 30 to 40 restaurants
during the fiscal year.
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"This was an outstanding quarter at both of our established operating
companies," said Drew Madsen, President and Chief Operating Officer for Darden.
"Olive Garden has a trusted brand, superior in-restaurant operations and highly
effective marketing. They continue to deliver consistently strong growth and
exceptional levels of absolute performance. Red Lobster also had a tremendous
quarter, driven by record guest satisfaction, improved cost management and a
powerful "Endless Shrimp" promotion. They have made significant progress in
improving their business fundamentals. Smokey Bones and Bahama Breeze also made
progress strengthening their business models and improving their guest
experience."
Outlook
The Company now expects diluted net earnings per share growth in the range of
22% to 27% on a GAAP basis, which is a growth rate of 10% to 15% excluding the
asset impairment and restructuring charge ($23.1 million after tax or $0.14 per
diluted share) taken in the fourth quarter of fiscal 2004. The Company had
previously estimated that diluted net earnings per share growth would be in the
range of 8% to 12% excluding the asset impairment and restructuring charge taken
in the fourth quarter of fiscal 2004.
Other Actions
Darden continued the buyback of its common stock, purchasing 256,155 shares in
the second quarter. Since December 1995, the Company has repurchased 112.4
million shares under authorizations totaling 137.4 million shares.
Restatement
Following a review of its accounting policy and in consultation with its
independent registered public accounting firm, KPMG LLP, the Company has
corrected its computation of straight-line rent expense and the related deferred
rent liability. As a result, the Company will restate its financial statements
for fiscal 1996 through fiscal 2004 and for the first quarter of fiscal 2005.
Historically, when accounting for leases with renewal options, the Company has
recorded rent expense on a straight-line basis over the initial non-cancelable
lease term, with the term commencing when actual rent payments began. The
Company depreciated its buildings, leasehold improvements and other long-lived
assets on those properties over a period that included both the initial
non-cancelable term of the lease and all option periods provided for in the
lease (or the useful life of the assets if shorter). The Company will restate
its financial statements to recognize rent expense on a straight-line basis over
the entire lease term, including cancelable option periods where failure to
exercise such options would result in an economic penalty. The lease term will
commence on the date when the Company becomes legally obligated for the rent
payments.
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The Company estimates that the cumulative effect of the restatement through
fiscal 2004 will be an increase in the deferred rent liability of approximately
$120 million. In addition, the deferred income tax liability as of the end of
fiscal 2004 will decrease by approximately $46 million. As a result, retained
earnings at the end of fiscal 2004 will decrease by approximately $74 million.
Rent expense for fiscal years ended 2002, 2003 and 2004 will increase by
approximately $8 million, $10 million and $7 million, respectively, and for the
first quarter of fiscal 2005 by approximately $1.8 million. The restatement will
decrease diluted net earnings per share by approximately $0.03, $0.04 and $0.03
for the fiscal years ended 2002, 2003 and 2004, respectively, and approximately
$0.007 for the first quarter of fiscal 2005. The restatement will not have any
impact on the Company's previously reported cash flows, sales or same-restaurant
sales or compliance with any covenant under its credit facility or other debt
instruments.
These estimates are subject to change as the Company's independent registered
public accounting firm completes its review. The Company will amend the
appropriate filings with the Securities and Exchange Commission (SEC) to include
the restated financial statements. As a result of the restatement, the financial
statements contained in the Company's prior filings with the SEC should no
longer be relied upon.
November 2005 Same-Restaurant Sales Results
Darden reported same-restaurant sales for the four-week November fiscal month
ended November 28, 2004. This period is the last month of Darden's fiscal 2005
second quarter.
Same-restaurant sales at Olive Garden were up 4% to 5% for fiscal November,
which reflected a 3% to 4% increase in guest counts and approximately 1%
increase in check average. The check average increase was a result of a 2%
increase in pricing and a 1% decrease from menu mix changes. Last year, Olive
Garden had an increase of 8% to 9% in same-restaurant sales during fiscal
November.
Same-restaurant sales at Red Lobster were up approximately 2% for fiscal
November, which reflected a decrease of approximately 2% in guest counts and an
increase of approximately 4% in check average from menu mix changes. Last year,
Red Lobster realized an 8% to 9% decrease in same-restaurant sales during fiscal
November.
The Company estimates that this year's shift of Thanksgiving from fiscal
December to fiscal November adversely affected November same-restaurant sales
results at both Olive Garden and Red Lobster by approximately 2 to 3 percentage
points.
Darden Restaurants, Inc., headquartered in Orlando, FL, owns and operates over
1,300 Red Lobster, Olive Garden, Bahama Breeze, Smokey Bones and Seasons 52
restaurants with annual sales of $5.0 billion.
Forward-looking statements in this news release, if any, are made under the Safe
Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Certain important factors could cause results to differ materially from those
anticipated by the forward-looking statements, including the completion of the
accounting restatement, the impact of changing economic or business conditions,
the impact of competition, the availability of favorable credit and trade terms,
the impact of changes in the cost or availability of food and real estate,
government regulation, construction costs, weather conditions and other factors
discussed from time to time in reports filed by the Company with the Securities
and Exchange Commission.
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DARDEN RESTAURANTS, INC.
NUMBER OF RESTAURANTS
11/28/04 11/23/03
-------- --------
649 Red Lobster USA 649
31 Red Lobster Canada 31
------ ------------------ ------
680 Total Red Lobster 680
541 Olive Garden USA 526
6 Olive Garden Canada 6
------ ------------------- -------
547 Total Olive Garden 532
32 Bahama Breeze 37
83 Smokey Bones BBQ 53
1 Seasons 52 1
------ -------
1,343 Total Restaurants 1,303
DARDEN RESTAURANTS, INC.
SECOND QUARTER FY 2005 FINANCIAL HIGHLIGHTS
(In millions, except per share data)
(Unaudited)
13 Weeks Ended 26 Weeks Ended
-------------- --------------
Restated Restated
11/28/2004 11/23/2003 11/28/2004 11/23/2003
---------- ---------- ---------- ----------
Sales $ 1,229.4 $ 1,142.5 $ 2,508.0 $ 2,402.2
Net earnings $ 43.0 $ 30.1 $ 114.0 $ 97.5
Net earnings per share:
Basic $ 0.27 $ 0.18 $ 0.73 $ 0.59
Diluted $ 0.26 $ 0.18 $ 0.70 $ 0.57
Average number of common
shares outstanding:
Basic 156.8 164.9 157.2 164.8
Diluted 163.4 171.0 163.4 170.7
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DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
13 Weeks Ended 26 Weeks Ended
-------------- --------------
Restated Restated
11/28/2004 11/23/2003 11/28/2004 11/23/2003
---------- ---------- ---------- ----------
Sales $ 1,229,373 $ 1,142,543 $ 2,508,017 $ 2,402,232
Costs and expenses:
Cost of sales:
Food and beverage 368,036 346,200 759,457 742,913
Restaurant labor 400,714 375,614 806,530 767,949
Restaurant expenses 202,225 192,939 397,225 385,677
Total cost of sales (1) $ 970,975 $ 914,753 $ 1,963,212 $ 1,896,539
Selling, general and administrative 130,785 120,320 245,365 233,961
Depreciation and amortization 53,176 52,048 105,936 103,601
Interest, net 11,007 10,725 21,971 21,366
Total costs and expenses $ 1,165,943 $ 1,097,846 $ 2,336,484 $ 2,255,467
Earnings before income taxes 63,430 44,697 171,533 146,765
Income taxes (20,416) (14,638) (57,497) (49,298)
$ 43,014 $ 30,059 $ 114,036 $ 97,467
Net earnings per share:
Basic $ 0.27 $ 0.18 $ 0.73 $ 0.59
Diluted $ 0.26 $ 0.18 $ 0.70 $ 0.57
Average number of common shares outstanding:
Basic 156,800 164,900 157,200 164,800
Diluted 163,400 171,000 163,400 170,700
(1) Excludes restaurant depreciation
and amortization as follows: $ 49,486 $ 48,443 $ 98,705 $ 96,525
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DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
SUMMARY OF RESTATEMENT IMPACTS
13 WEEKS ENDED 11/23/2003
(In thousands, except per share data)
(Unaudited)
As reported Adjustments As restated
------------ ----------- -----------
Sales $ 1,142,543 $ -- $ 1,142,543
Costs and expenses:
Cost of sales:
Food and beverage 346,200 -- 346,200
Restaurant labor 375,614 -- 375,614
Restaurant expenses 191,010 1,929 192,939
Total cost of sales $ 912,824 $ 1,929 914,753
Selling, general and administrative 120,320 -- 120,320
Depreciation and amortization 52,048 -- 52,048
Interest, net 10,725 -- 10,725
Total costs and expenses $ 1,095,917 $ 1,929 $ 1,097,846
Earnings before income taxes 46,626 (1,929) 44,697
Income taxes (15,373) 735 (14,638)
Net earnings $ 31,253 $ (1,194) $ 30,059
Net earnings per share:
Basic $ 0.19 $ (0.01) $ 0.18
Diluted $ 0.18 $ -- $ 0.18
Average number of common shares outstanding:
Basic 164,900 -- 164,900
Diluted 171,000 -- 171,000
DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
SUMMARY OF RESTATEMENT IMPACTS
26 WEEKS ENDED 11/23/2003
(In thousands, except per share data)
(Unaudited)
As reported Adjustments As restated
----------- ----------- -----------
Sales $ 2,402,232 $ -- $ 2,402,232
Costs and expenses:
Cost of sales:
Food and beverage 742,913 -- 742,913
Restaurant labor 767,949 -- 767,949
Restaurant expenses 381,832 3,845 385,677
Total cost of sales $ 1,892,694 $ 3,845 $ 1,896,539
Selling, general and administrative 233,961 -- 233,961
Depreciation and amortization 103,601 -- 103,601
Interest, net 21,366 -- 21,366
Total costs and expenses $ 2,251,622 $ 3,845 $ 2,255,467
Earnings before income taxes 150,610 (3,845) 146,765
Income taxes (50,763) 1,465 (49,298)
Net earnings $ 99,847 $ (2,380) $ 97,467
Net earnings per share:
Basic $ 0.61 $ (0.02) $ 0.59
Diluted $ 0.58 $ (0.01) $ 0.57
Average number of common shares outstanding:
Basic 164,800 -- 164,800
Diluted 170,700 -- 170,700
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DARDEN RESTAURANTS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
Restated
11/28/2004 5/30/2004
---------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 60,431 $ 36,694
Receivables 30,905 30,258
Inventories 236,441 198,781
Assets held for sale 889 --
Prepaid expenses and other current assets 22,670 25,316
Deferred income taxes 60,338 55,258
Total current assets $ 411,674 $ 346,307
Land, buildings and equipment 2,292,062 2,250,616
Other assets 184,182 183,425
Total assets $ 2,887,918 $ 2,780,348
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 162,142 $ 174,624
Short-term debt -- 14,500
Accrued payroll 92,600 103,327
Accrued income taxes 91,495 48,753
Other accrued taxes 36,083 38,440
Unearned revenues 71,154 75,513
Current portion of long-term debt 149,931 --
Other current liabilities 246,493 228,324
Total current liabilities $ 849,898 $ 683,481
Long-term debt, less current portion 502,574 653,349
Deferred income taxes 123,944 130,370
Deferred rent liability 133,394 128,952
Other liabilities 15,093 12,661
Total liabilities $ 1,624,903 $ 1,608,813
Stockholders' equity:
Common stock and surplus $ 1,632,633 $ 1,584,115
Retained earnings 1,231,684 1,123,900
Treasury stock (1,547,759) (1,483,768)
Accumulated other comprehensive income (loss) (7,478) (10,173)
Unearned compensation (45,281) (41,401)
Officer notes receivable (784) (1,138)
Total stockholders' equity $ 1,263,015 $ 1,171,535
Total liabilities and stockholders'
equity $ 2,887,918 $ 2,780,348
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DARDEN RESTAURANTS, INC.
CONSOLIDATED BALANCE SHEETS
5/30/2004
(In thousands)
(Unaudited)
As Reported Adjustments As Restated
----------- ----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 36,694 $ -- $ 36,694
Receivables 30,258 -- 30,258
Inventories 198,781 -- 198,781
Prepaid expenses and other current assets 25,316 -- 25,316
Deferred income taxes 55,258 -- 55,258
Total current assets $ 346,307 $ -- $ 346,307
Land, buildings and equipment 2,250,616 -- 2,250,616
Other assets 183,425 -- 183,425
Total assets $ 2,780,348 $ -- $ 2,780,348
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 174,624 $ -- $ 174,624
Short-term debt 14,500 -- 14,500
Accrued payroll 103,327 -- 103,327
Accrued income taxes 48,753 -- 48,753
Other accrued taxes 38,440 -- 38,440
Unearned revenues 75,513 -- 75,513
Other current liabilities 228,324 -- 228,324
Total current liabilities $ 683,481 $ -- $ 683,481
Long-term debt, less current portion 653,349 -- 653,349
Deferred income taxes 176,216 (45,846) 130,370
Deferred rent liability -- 128,952 128,952
Other liabilities 21,532 (8,871) 12,661
Total liabilities $ 1,534,578 $ 74,235 $ 1,608,813
Stockholders' equity:
Common stock and surplus, no par value.
Authorized 500,000 shares: issued 264,907
and 261,463, shares, respectively;
outstanding 158,431 and 164,950 shares,
respectively $ 1,584,115 $ -- $ 1,584,115
Preferred stock, no par value.
Authorized 25, 000 shares;
none issued and outstanding -- -- --
Retained earnings 1,197,921 (74,021) 1,123,900
Treasury stock, 106,476 and 96,513 shares,
at cost, respectively (1,483,768) -- (1,483,768)
Accumulated other comprehensive income (loss) (9,959) (214) (10,173)
Unearned compensation (41,401) -- (41,401)
Officer notes receivable (1,138) -- (1,138)
Total stockholders' equity $ 1,245,770 $ (74,235) $ 1,171,535
Total liabilities and stockholders' equity $ 2,780,348 $ -- $ 2,780,348
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